China Everbright Bank (601818): Revenue growth hits recent years, and the establishment of a new high wealth management subsidiary is approved
Event: On April 25, China Everbright Bank disclosed the quarterly report for the year of 19
Realized revenue of 338.
4 billion, a year-on-year increase of +33.
5%; profit before provision 248.
4 billion, a year-on-year increase of +36.
8%; net profit attributable to mother 97.
3 billion, a year-on-year increase of +7.
5%; ROE reached 13.
12% (from single season 3.
28% annualized); NPL ratio 1.
59%, provision coverage rate of 178.
Comments: Revenue growth hit a new high in recent years. Index revenue and middle income growth are gratifying. Revenue and PPOP growth hit a new high since 12Q1.
Operating income was +33 year-on-year.
5%, profit before provision YoY + 36.
9%, both hit a new high since 12Q1.
There have been two revenue caliber adjustments.
In 18 years, the debt-based and cargo-based income was adjusted from “interest income” to “investment income” (this report deals with the current period).
Since 19 years, the credit card installment has been adjusted from “handling fee and commission income” to “interest income” accounting (this report makes retrospective adjustments to previous periods).
Interest income and middle income continued to increase.
Under the unified caliber, the net interest income in 19Q1 was +51 year-on-year.
2%, following 18 years to 20.
4% growth rate exceeded 16-17 years -1.
8% and -6.
After the 6% downturn, it continued to rebound.
Excluding credit card installment income, net fee income +24.
7%, which lasted 18 years 19 years.
The growth rate of 9% has been strengthened.
The business structure returned to the deposit and loan business, and the net interest margin continued to rebound. In 19Q1, it continued to return to the deposit and loan business.
On the interest-generating asset side, the proportion of loans in 19Q1 increased by 0 in the initial period.
5pct to 57.
4%, investment fell by 1.
2 pct to 29.
Interest-bearing debt side, 19Q1 deposits accounted for an increase of 4.
7 pct to 69.
3%, interbank + debt financing fell 3.
8 pct to 24.
Both adjustments are conducive to the widening of the net interest margin, and the size of the adjustment range at the negative end will have more obvious effects.
Net interest margin continued to increase.
Looking at the four quarters of 2018, the ranges are 7BP, 4BP, 5BP, 6BP, and 19Q1, which are 54BP higher than in 18Q.
The net interest margin in each quarter of 2018 was the reduction caliber, and 19Q1 was the new caliber. The two are not strictly comparable. They are mainly based on the elimination of the debt-based cargo base and the addition of installment income. The yield is lower than the former.Makes the interest rate significantly higher.
The safety of the first quarter report has been revealed, and CITIC has also shown that its net interest margin has widened. It is expected that the net interest margin under a large and uniform caliber will still pick up.
西安耍耍网 The quality of assets remained stable, and preferred stocks + perpetual bonds made capital more and more affluent. The non-performing ratio remained stable, unchanged from the end of 18 years, which was 1.
59%, the non-performing center has been maintained since the past 15, highlighting its sound operation.
Provision ratio in 19Q1 increased from the end of 18% 2.
5 pct to 178.
7%, still relatively abundant.
The capital adequacy ratio remained stable.
19Q1 was slightly lower than at the end of 18, but still relatively abundant.
In the end, it was mainly in the Tier 1 capital adequacy ratio. At the end of 19Q1, there was 153BP from the regulatory red line.
Preference shares and perpetual debt programs are on the way.
It was announced at the end of February 19 that the validity period of the US $ 35 billion preferred stock plan was extended for 24 months; in March, the plan was approved by the CSRC.
In addition, at the end of March, a scheme of not more than 40 billion yuan in perpetual debt was adopted instead.
The two schemes total 75 billion yuan, and if successfully issued, they will be included in other Tier 1 capital.
Based on RWA at the end of 19Q1, it can boost Tier 1 capital adequacy ratio2.
28 pct, if the core tier 1 capital is also effectively replenished, capital constraints will be less in the next 2-3 years.
Investment suggestion: Revenue and PPOP growth hit new highs in recent years, wealth management subsidiaries set up approvals. Revenue growth hit a new high since 12Q1; business returns to deposits and loans, and net interest margins continue to rise; wealth management subsidiaries are the first of their kindApproved for construction; preferred shares + perpetual bonds to be issued, capital may be more abundant.
It is expected that the growth rate of net profit attributable to mothers in 19-21 will be 8.
5% / 9.
3% / 10.
1%, the corresponding EPS is 0.
84 yuan, the target assessment will be doubled for 19 years of PB, and the target price is 6.
14 yuan, maintain BUY rating.
Risk warning: deposit growth rate does not meet expected binding asset expansion; internal and external environment uncertainty is strengthened.